Urban Population and Amenities: The Neoclassical Model of Location

David Albouy and Bryan Stuart
Additional contact information
David Albouy: University of Illinois and NBER

Working Papers from The George Washington University, Institute for International Economic Policy

Abstract: We develop a neoclassical general-equilibrium model to explain cross-metro variation in population, density, and land supply. We provide new methods to estimate local traded and non-traded productivities, and elasticities of housing and land supply, using density and land-area data. From wage and housing-cost indices, the model explains half of U.S. density and total population variation, and finds that quality-oflife determines population and density more than employment opportunities (tradeproductivity). Productivity and factor substitution in housing (non-traded) production matter most, but are poor in nicer areas. We show how changing quality-of-life, relaxing land-use regulations, or neutralizing federal taxes could redistribute populations massively

Keywords: Population; density; quality of life; productivity; amenities; housing supply; land supply; local labor markets (search for similar items in EconPapers)
JEL-codes: H2 R12 R23 R31 (search for similar items in EconPapers)
Pages: 82 pages
Date: 2017
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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http://www2.gwu.edu/~iiep/assets/docs/papers/2017WP/StuartIIEP2017-23.pdf (application/pdf)

Related works:
Journal Article: URBAN POPULATION AND AMENITIES: THE NEOCLASSICAL MODEL OF LOCATION (2020)
Working Paper: Urban Population and Amenities: The Neoclassical Model of Location (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2017-23

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